Henderson Far East Income Share Discussion Threads

[zac0_4] 20/9/2021 15:10

Let's hope it's safer than our capital!!!

[gateside] 20/9/2021 08:54

With the fall of BHP & RIO and the tension in the region between China and Australia. How safe is the dividend here?

[petewy] 17/9/2021 16:45

hxxps://www.edisongroup.com/publication/consistently-high-and-growing-income/29746/

[exel] 17/9/2021 12:40

It’s almost inevitable that it will! But it’s also highly likely that the Chinese Authorities will act (covertly and/or otherwise) to prevent the potential contagion to which that contributor eloquently refers. In other news - HFEL has taken its China exposure down from 17.1% to 15.4% (end July’21 to end Aug’21). SOI & AAIF were each both closer to 10.5% China Exposure (at end Jul'21).

[al101uk] 17/9/2021 09:49

Don't know if this will have any further effect on China stocks: hTTps://www.youtube.com/watch?v=wW1boQJ2e60

[rogerramjett] 16/9/2021 13:03

Thanks Lord. I called HL to explain and came to the same conclusion as you have highlighted.

[exel] 16/9/2021 12:40

someone just lost patience with HFEL? 103,655 sold at 298.50p?

[lord gnome] 16/9/2021 07:11

You won't be paying any ongoing charges other than your standard account fees. This is a trust not a fund. You have bought shares like any other, not units.

[rogerramjett] 16/9/2021 06:50

Picked up 5k of these today and believe they are shown as a sell. Waiting to add another 5k should there be any further drop. Can someone advise how the Hargreaves Lansdown 1.08% Ongoing Charge is covered/paid ? Thanks

[aleman] 15/9/2021 21:42

There's loads of evidence that it's weather dependent but it does tend to get a bit obscured when governments keep changing restrictions on social mobility in ways that have been criticised for not always making sense.

[scruff1] 15/9/2021 21:11

And again thanks Aleman. Just one question. Is there any evidence that Covid is weather dependent yet? I cant see any evidence so far. eg our so called 4th(or is it the 3rd??) wave has occurred over the summer.

[aleman] 15/9/2021 20:42

Some selling in Chinese shares over the last couple of days. Probably down to another Covid outbreak and talk that China might let it run a bit more because they can't keep locking down over and over. Given they've struggled with Delta recently while it's hot, I doubt they'll make it through the winter without a major outbreak. I'd get used to the idea. (There is good news for HFEL in that they have reduced Chinese exposure a bit in recent months. It's 17% now. It was over 25% a year ago.)

[scruff1] 15/9/2021 20:39

Thanks for insight exel.

[exel] 15/9/2021 20:33

Far Eastern Market falls over last night (their wednesday 15/9/21) would be my guess, as these (repeated) pull-backs will kick into reported 'per share' LSE valuations of HFEL AAIF & SOI when reported tomorrow.

[scruff1] 15/9/2021 19:53

Only recently bought in. Notice mon and tues mainly buys and today virtually all sells. Is there a reason for the change of sentiment?

[exel] 12/9/2021 14:43

2sporrans - HUGE thanks for your post 823 (above). As a holder of AAIF, SOI and HFEL you'll readily see why your comments and graphic were SO helpful.

[aleman] 08/9/2021 12:14

Covid falling in Japan and Vietnam and looks to be starting to level out in Australia.

[tim 3] 04/9/2021 10:36

Actually writing covered calls to increase income could explain why the share price has remained low ,writing calls generally means you miss out on large moves up as the options are exercised.Like I said before it has advantages for increasing yield but at the potential cost of capital gain.

[2sporrans] 03/9/2021 14:40

Just for further and hopefully final clarity on this: "Post #810: "HFEL's portfolio generated an historic 4.8% divi. income at 30Jun21; hopefully growing to 5.2% a year hence." This refers to the divi. income COMMING INTO HFEL, not the divi. it is paying out. I posted a table from the Edison report referred to which states this fact. On the matter of dividend yields paid out by other Asian income funds, the same table does provide some comparison guidance. I'll concede that the table [see final column] states the HIGH Dividend Yield index "HDY" [earned, not paid out, if like for like] is given as 5.2% [historic] v 4.8% for HFEL. However, it is not clear what the index comprises. It has 203 constituents. So, are these mostly 'standard' companies, with a score or whatever of funds in there? The central column, the "Broad Asia Pacific" one, states an historic D. yield of 2.4%. 1850 constituents. Seems to me this is comprised of dividend paying companies; most Asian companies don't pay out a bean. Whatever, I've invested in Schroder Asian Income OEIC and AAIF investment trust and the former pays OUT divis of close to 4.0% currently, AAIF much the same. I've looked at several others and of those, most pay out less than these 2. In any event, it is clear that BOTH HFEL and the Asian HDY index have performed poorly over the past year v their lower divi paying income peers, as the graph below proves. It shows Total returns over past 3 year. There are 3 indices for Asian Income Equities and I've thrown in HFEL, AAIF and Schroder's. The general Asian Income Index is best represented by the paler blue line. Up until July 20, there wasn't a huge disparity between the six funds/indices. If one goes back 5 years, the performances were also pretty close to one another over the first 4 years. HFEL has even underperformed the [Red] HDY index over the past year; last 6 months notably. Question is, why such an underperformance, given HFEL has stood up well historically? The answers to this question will hold the key as to whether HFEL will play 'catch-up' and when. Hopefully, this won't be a case of HFEL merely falling less during a big correction or bear market and be essentially to do with a revival in "Value" stocks. Perhaps, a genuine hunger for yield will emerge, rather than the absurdly named observation, relating to the 35 yr bond bubble: The relentless buying of fixed income securities driven by a host of hostage buyers: Pension funds, insurance Co.s, dedicated bond funds etc mandated to hold only FI securities, however crushed the yields and dear the prices; the Central Banks and their monetary largess being wholly insensitive to these prices. If we end up with a dis-inflationary, low growth world, rather than a stagflationary or inflationary one, you'd think a high, sustainable divi income stream will be attractive. With limited incentives for high CAPEX, profitable companies returning value to shareholders.....

[masurenguy] 03/9/2021 10:29

2sporrans - my cumulative dividends in CLIG have recovered circa 90% of my total investment in that fund over that period. The 9% is based on the overall cost of my investment without taking those cumulative returns into account. Edit: I was invested in HFEL but sold out @338.4p on 31/01/20. I re-entered a couple of weeks ago @292.5 and have topped up since taking my average cost to 295.2p. Hope to have caught a rebound close to the bottom.

[2sporrans] 03/9/2021 10:23

Masurenguy OK. I was referring to peers as a whole. Basically, other Asian Income funds [ ITs, OEICS, ETFs, unit trusts etc]. Can you evidence to the contrary? Besides, 6.3% - CLIG, though high, is considerably lower than a tiny tad under 8% - HFEL - at current prices. Your current yield of 9%, excellent though it is, surely reflects income growth over the 11 years you've been invested; will be peculiar to the [lower]share prices/amounts you bought at and how many years/rate of divi growth since purchase.

[danieldruff2] 03/9/2021 10:19

HFEL provides the certainty of income and the certainty of underperformance

[panshanger1] 03/9/2021 10:10

Happy holding both

[panshanger1] 03/9/2021 10:09

Not really comparing like for like though !!CLIG is an asset manager not an asian focused investment trust

[masurenguy] 03/9/2021 10:00

Post #816: "While the HFEL divi income is way higher than that paid out by its peers [few pay out above 4%]" Not so - I've been invested in CLIG for 11 years. My current yield there is over 9% and it should be circa 6.3% this year for any new investors at the current price.